Nintendo SWOT Analysis
Nintendo is one of the leading brands in the consumer electronics sector. Nintendo SWOT analysis evaluates the brand by its strengths & weaknesses which are the internal factors along with opportunities & threats which are the external factors. Let us start the SWOT Analysis of Nintendo:
Quick Glance:
Nintendo Strengths
- Nintendo is an established brand in video games which gives it a great competitive advantage
- The basic strategy of ‘Gaming Population Expansion’ to provide a wider customer base in future
- Nintendo has a strong brand reputation and recognition unlike some of the new mobile gaming companies
- The company has a unique and innovative product offerings with latest games
- Geographical diversification has reduced the business risk of the company
- Innovative and simple game-play using a mixed of motion sensitivity and aiming device was pioneered by Nintendo
- Affordable gaming options for people of a variety of economic classes makes it popular
- Nintendo company has more than 5000 employees and a revenue of more than $15 billion annually
- Nintendo Switch Online (NSO) provides users gaming on cloud with a great experience
Above are the strengths in the SWOT Analysis of Nintendo. The strengths of Nintendo looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.
Nintendo Weaknesses
- High dependence on few gaming titles unlike a few leading competitors
- Nintendo brand hasn't established itself in the emerging economies
- Limitations of enforcing intellectual property rights in some regions has led to growth of counterfeit products
These were the weaknesses in the Nintendo SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.
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Nintendo Opportunities
- Expansion of digital business by offering downloadable paid add-on content and digital distribution of packaged software
- Increasing focus on third party software development will benefit Nintendo due to its relatively simple technology and low development costs
- Expanding demographics of gaming consumers
- Technological innovations set to improve gaming experience, which can be tapped for growth
- Enhanced Wi-Fi capabilities can help make inroads in the online gaming sphere
- Significant R&D capabilities can be employed to diversify in to related fields, especially VR gaming
Above we covered the opportunities in Nintendo SWOT Analysis. The opportunities for any brand can include prospects of future growth.
Nintendo Threats
- The growing trend of online and mobile gaming can prove to be a threat to both, the handheld and console gaming
- Changing industry environment can affect the business margins
- Lack of diversification outside the video games design field
- High proportion of overseas sales has exposed the company to risks relating to fluctuation in foreign exchange rates
The threats in the SWOT Analysis of Nintendo are as mentioned above. The threats for any business can be external factors which can negatively impact its business.
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Hence this concludes the Nintendo SWOT analysis.
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About Nintendo
The table below gives the brand overview along with its target market, segmentation, positioning & USP
| Nintendo Overview | |
|---|---|
| Parent Company |
Nintendo Company Limited |
| Category |
Gaming Consoles |
| Sector | |
| Tagline/ Slogan |
Now you're playing with power; Wii would like to play; Take a look inside |
| USP |
Motion sensing technology and simple controller design to appeal to the inexperienced console gamers. |
| Nintendo STP | |
| Segmentation |
Activity oriented gaming consoles and handheld mobile gaming devices |
| Target Market |
Urban kids and families from the upper middle class |
| Positioning |
Social and active entertainment that brings the whole family together and supports movement and exercise. |
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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